Alliant Energy Announces Second Quarter 2017 Results
MADISON, Wis., Aug. 3, 2017 /PRNewswire/ -- Alliant Energy Corporation (NYSE: LNT) today announced results for the three months ended June 30 as follows:
Unaudited earnings per share
(EPS) from continuing
operations Three Months
----------------------------
2017 2016
---- ----
Utilities, ATC Investment and
Corporate Services $0.40 $0.35
Non-regulated and Parent 0.01 0.02
---- ----
Alliant Energy Consolidated $0.41 $0.37
===== =====
"The second quarter results were in line with our expectations and reflect earnings on our increasing rate base," said Patricia Kampling, Alliant Energy Chairman, President and CEO. "With the solid earnings to date, we are reaffirming 2017 earnings per share guidance."
Utilities, ATC Investment and Corporate Services - Alliant Energy's Utilities, American Transmission Company Investment (ATI) and Alliant Energy Corporate Services, Inc. (Corporate Services) operations generated $0.40 per share of generally accepted accounting principles (GAAP) EPS from continuing operations in the second quarter of 2017, which was $0.05 per share higher than the second quarter of 2016. The primary drivers of higher EPS were higher revenues resulting from Interstate Power and Light Company's (IPL) interim retail electric base rate increase implemented in April 2017 and Wisconsin Power and Light Company's (WPL) retail electric and gas base rate increases implemented in January 2017. These items were partially offset by lower EPS caused by higher depreciation expense and higher energy efficiency cost recovery amortization at WPL.
Non-regulated and Parent - Alliant Energy's Non-regulated and Parent operations generated $0.01 per share of GAAP EPS from continuing operations in the second quarter of 2017, which was a decline of $0.01 per share compared to the second quarter of 2016.
Details regarding GAAP EPS from continuing operations variances between the second quarters of 2017 and 2016 for Alliant Energy are as follows:
Q2 2017 Q2
2016 Variance
------- ----- --------
Utilities, ATC Investment and Corporate
Services:
Higher margins from IPL interim retail
electric base rate increase $0.05 $- $0.05
Higher margins from WPL retail electric and
gas base rate increases 0.05 - 0.05
Higher depreciation expense (0.03)
Higher energy efficiency cost recovery
amortization at WPL (0.01) 0.01 (0.02)
Timing of income tax expense, including
impacts of tax benefit rider 0.02
Estimated temperature impact on retail
electric and gas sales - 0.01 (0.01)
Other (0.01)
-----
Total Utilities, ATC Investment and
Corporate Services $0.05
=====
Non-regulated and Parent:
Timing of income tax expense, including
impacts of tax benefit rider ($0.01)
Total Non-regulated and Parent ($0.01)
======
Higher margins from IPL interim retail electric base rate increase - In April 2017, IPL filed a request with the Iowa Utilities Board to increase annual rates for its Iowa retail electric customers by $176 million. The request was based on a 2016 historical Test Year as adjusted for certain known and measurable changes occurring up to 12 months after the commencement of the proceeding. An interim retail electric rate increase of $102 million, on an annual basis, was implemented effective April 13, 2017.
Higher margins from WPL retail electric and gas base rate increases - In December 2016, WPL received an order from the Public Service Commission of Wisconsin authorizing WPL to implement an increase in annual retail electric and gas rates of $9 million, each. The retail electric rate increase is comprised of a $60 million retail electric base rate increase and a $51 million monitored fuel-related cost decrease. Effective January 1, 2017, WPL no longer has winter rates that are lower than summer rates. Thus, the quarter-over-quarter variances resulting from the retail electric base rate increase will be larger during the winter quarters, compared to the summer quarters.
2017 Earnings Guidance
Alliant Energy is reaffirming EPS guidance for 2017 as follows:
Utilities, ATC Investment and
Corporate Services $1.90 - $2.02
Non-regulated and Parent 0.02 - 0.04
Alliant Energy Consolidated $1.92 - $2.06
Drivers for Alliant Energy's 2017 earnings guidance include, but are not limited to:
-- Ability of IPL and WPL to earn their authorized rates of return
-- Stable economy and resulting implications on utility sales
-- Normal temperatures in its utility service territories
-- Continuing cost controls and operational efficiencies
-- Execution of IPL's and WPL's capital expenditure and financing plans
-- Consolidated effective tax rate of 17%
The 2017 earnings guidance does not include the impacts of any material non-cash valuation adjustments, regulatory-related charges or credits, reorganizations or restructurings, discontinued operations, further impacts from anticipated changes to ATC LLC's authorized return on equity, future changes in laws or regulations including potential tax reform, adjustments made to deferred tax assets and liabilities from valuation allowances and organizational structure changes, pending lawsuits and disputes, federal and state income tax audits and other Internal Revenue Service proceedings or changes in GAAP and tax methods of accounting that may impact the reported results of Alliant Energy.
Earnings Conference Call
A conference call to review the second quarter 2017 results is scheduled for Friday, August 4th at 9:00 a.m. central time. Alliant Energy Chairman, President and Chief Executive Officer Patricia Kampling and Vice President, Chief Financial Officer and Treasurer Robert Durian will host the call. The conference call is open to the public and can be accessed in two ways. Interested parties may listen to the call by dialing 888-394-8218 (United States or Canada) or 719-457-1036 (International), passcode 4175543. Interested parties may also listen to a webcast at www.alliantenergy.com/investors. In conjunction with the information in this earnings announcement and the conference call, Alliant Energy posted supplemental materials on its website. A replay of the call will be available through August 11, 2017, at 888-203-1112 (United States or Canada) or 719-457-0820 (International), passcode 4175543. An archive of the webcast will be available on the Company's Web site at www.alliantenergy.com/investors for 12 months.
About Alliant Energy Corporation
Alliant Energy is the parent company of two public utility companies - Interstate Power and Light Company and Wisconsin Power and Light Company - and of Alliant Energy Finance, LLC, the parent company of Alliant Energy's non-regulated operations. Alliant Energy is an energy-services provider with utility subsidiaries serving approximately 960,000 electric and 410,000 natural gas customers. Providing its customers in the Midwest with regulated electricity and natural gas service is the Company's primary focus. Alliant Energy, headquartered in Madison, Wisconsin, is a component of the S&P 500 and is traded on the New York Stock Exchange under the symbol LNT. For more information, visit the Company's Web site at www.alliantenergy.com.
Forward-Looking Statements
This press release includes forward-looking statements. These forward-looking statements can be identified by words such as "forecast," "expect," "guidance," or other words of similar import. Similarly, statements that describe future financial performance or plans or strategies are forward-looking statements. Such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Actual results could be materially affected by the following factors, among others:
-- federal and state regulatory or governmental actions, including the
impact of energy, tax (including potential tax reform), financial and
health care legislation, and of regulatory agency orders;
-- IPL's and WPL's ability to obtain adequate and timely rate relief to
allow for, among other things, the recovery of fuel costs, operating
costs, transmission costs, environmental compliance and remediation
costs, deferred expenditures, capital expenditures, and remaining costs
related to electric generating units (EGUs) that may be permanently
closed, earning their authorized rates of return, and the payments to
their parent of expected levels of dividends;
-- the ability to continue cost controls and operational efficiencies;
-- the impact of IPL's pending retail electric base rate review;
-- weather effects on results of utility operations;
-- the impact of the economy in IPL's and WPL's service territories and the
resulting impacts on sales volumes, margins and the ability to collect
unpaid bills;
-- the impact of customer- and third party-owned generation, including
alternative electric suppliers, in IPL's and WPL's service territories
on system reliability, operating expenses and customers' demand for
electricity;
-- the impact of energy efficiency, franchise retention and customer
disconnects on sales volumes and margins;
-- the impact that price changes may have on IPL's and WPL's customers'
demand for electric, gas and steam services and their ability to pay
their bills;
-- developments that adversely impact the ability to implement the
strategic plan;
-- the ability to qualify for the full level of production tax credits on
planned and potential new wind farms and the impact of changes to
production tax credits for existing wind farms;
-- issues related to the availability and operations of EGUs, including
start-up risks, breakdown or failure of equipment, performance below
expected or contracted levels of output or efficiency, operator error,
employee safety, transmission constraints, compliance with mandatory
reliability standards and risks related to recovery of resulting
incremental costs through rates;
-- disruptions in the supply and delivery of natural gas, purchased
electricity and coal;
-- changes in the price of delivered natural gas, purchased electricity and
coal due to shifts in supply and demand caused by market conditions and
regulations;
-- impacts on equity income from unconsolidated investments due to further
potential changes to ATC LLC's authorized return on equity;
-- issues associated with environmental remediation and environmental
compliance, including compliance with the Consent Decree between WPL,
the U.S. Environmental Protection Agency (EPA) and the Sierra Club, the
Consent Decree between IPL, the EPA, the Sierra Club, the State of Iowa
and Linn County in Iowa, the coal combustion residuals rule, the Clean
Power Plan, future changes in environmental laws and regulations,
including the EPA's regulations for carbon dioxide emissions reductions
from new and existing fossil-fueled EGUs, and litigation associated with
environmental requirements;
-- the ability to defend against environmental claims brought by state and
federal agencies, such as the EPA, state natural resources agencies or
third parties, such as the Sierra Club, and the impact on operating
expenses of defending and resolving such claims;
-- impacts that storms or natural disasters in IPL's and WPL's service
territories may have on their operations and recovery of costs
associated with restoration activities;
-- the direct or indirect effects resulting from terrorist incidents,
including physical attacks and cyber attacks, or responses to such
incidents;
-- the impact of penalties or third-party claims related to, or in
connection with, a failure to maintain the security of personally
identifiable information, including associated costs to notify affected
persons and to mitigate their information security concerns;
-- the direct or indirect effects resulting from breakdown or failure of
equipment in the operation of gas distribution systems, such as leaks,
explosions and mechanical problems, and compliance with gas transmission
and distribution safety regulations, such as proposed rules issued by
the Pipeline and Hazardous Materials Safety Administration;
-- impacts of IPL's future tax benefits from Iowa rate-making practices,
including deductions for repairs expenditures and allocation of mixed
service costs, and recoverability of the associated regulatory assets
from customers, when the differences reverse in future periods;
-- risks associated with non-regulated renewable investments;
-- any material post-closing adjustments related to any past asset
divestitures, including the sales of IPL's Minnesota electric and
natural gas assets, and Whiting Petroleum Corporation, which could
result from, among other things, warranties, parental guarantees or
litigation;
-- continued access to the capital markets on competitive terms and rates,
and the actions of credit rating agencies;
-- inflation and interest rates;
-- changes to the creditworthiness of counterparties with which Alliant
Energy, IPL and WPL have contractual arrangements, including
participants in the energy markets and fuel suppliers and transporters;
-- current or future litigation, regulatory investigations, proceedings or
inquiries;
-- reputational damage from negative publicity, protests, fines, penalties
and other negative consequences resulting in regulatory and/or legal
actions;
-- Alliant Energy's ability to sustain its dividend payout ratio goal;
-- employee workforce factors, including changes in key executives,
collective bargaining agreements and negotiations, work stoppages or
restructurings;
-- changes in technology that alter the channels through which electric
customers buy or utilize electricity;
-- material changes in employee-related benefit and compensation costs;
-- the effect of accounting standards issued periodically by
standard-setting bodies;
-- the impact of adjustments made to deferred tax assets and liabilities
from state apportionment assumptions;
-- the ability to utilize tax credits and net operating losses generated to
date, and those that may be generated in the future, before they expire;
-- the ability to successfully complete tax audits and changes in tax
accounting methods with no material impact on earnings and cash flows;
and
-- factors listed in the "2017 Earnings Guidance" section of this press
release.
For more information about potential factors that could affect Alliant Energy's business and financial results, refer to Alliant Energy's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), including the section therein titled "Risk Factors," and its other filings with the SEC.
Without limitation, the expectations with respect to 2017 earnings guidance in this press release are forward-looking statements and are based in part on certain assumptions made by Alliant Energy, some of which are referred to in the forward-looking statements. Alliant Energy cannot provide any assurance that the assumptions referred to in the forward-looking statements or otherwise are accurate or will prove to be correct. Any assumptions that are inaccurate or do not prove to be correct could have a material adverse effect on Alliant Energy's ability to achieve the estimates or other targets included in the forward-looking statements. The forward-looking statements included herein are made as of the date hereof and, except as required by law, Alliant Energy undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances.
Use of Non-GAAP Financial Measures
Alliant Energy included in this press release IPL; WPL, excluding ATC Investment; ATC Investment; Corporate Services; utilities, ATC Investment and Corporate Services; and non-regulated and parent EPS from continuing operations for the three and six months ended June 30, 2017 and 2016. Alliant Energy believes these non-GAAP financial measures are useful to investors because they facilitate an understanding of segment performance and trends and provide additional information about Alliant Energy's operations on a basis consistent with the measures that management uses to manage its operations and evaluate its performance.
Note: Unless otherwise noted, all "per share" references in this release refer to earnings per diluted share.
ALLIANT ENERGY CORPORATION
EARNINGS SUMMARY (Unaudited)
The following tables provide a summary of Alliant Energy's results for the
three months ended June 30:
EPS: Three Months
----
2017 2016
---- ----
IPL $0.19 $0.14
WPL, excluding ATC Investment 0.17 0.17
ATC Investment 0.03 0.02
Corporate Services 0.01 0.02
---- ----
Subtotal for Utilities, ATC
Investment and Corporate
Services 0.40 0.35
Non-regulated and Parent 0.01 0.02
---- ----
Alliant Energy Consolidated $0.41 $0.37
===== =====
Earnings (in millions): Three Months
-----------------------
2017 2016
---- ----
IPL $42.8 $31.9
WPL, excluding ATC Investment 38.1 38.5
ATC Investment 6.7 5.2
Corporate Services 3.3 3.0
--- ---
Subtotal for Utilities, ATC
Investment and Corporate
Services 90.9 78.6
Non-regulated and Parent 3.4 5.8
--- ---
Earnings from continuing
operations 94.3 84.4
Loss from discontinued operations - (0.5)
Alliant Energy Consolidated $94.3 $83.9
===== =====
The following tables provide a summary of Alliant Energy's results for the
six months ended June 30:
EPS: Six Months
----
2017 2016
---- ----
IPL $0.35 $0.34
0.35
WPL, excluding ATC
Investment 0.37
ATC Investment 0.06 0.05
Corporate Services 0.02 0.03
---- ----
Subtotal for Utilities,
ATC Investment and
Corporate Services 0.80 0.77
Non-regulated and Parent 0.05 0.03
---- ----
Alliant Energy
Consolidated $0.85 $0.80
===== =====
Earnings (in millions): Six Months
-----------------------
2017 2016
---- ----
IPL $80.0 $77.5
WPL, excluding ATC
Investment 83.6 79.0
ATC Investment 13.6 11.7
Corporate Services 6.5 5.8
--- ---
Subtotal for Utilities,
ATC Investment and
Corporate Services 183.7 174.0
Non-regulated and Parent 9.6 8.0
--- ---
Earnings from continuing
operations 193.3 182.0
Income (loss) from
discontinued operations 1.4 (1.6)
Alliant Energy
Consolidated $194.7 $180.4
====== ======
ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2017 2016 2017 2016
---- ---- ---- ----
(in millions, except per share amounts)
Operating revenues:
Electric utility $680.9 $675.9 $1,358.5 $1,344.8
Gas utility 62.6 57.0 216.9 209.2
Other utility 11.5 12.4 23.2 25.6
Non-regulated 10.3 9.3 20.6 18.8
---- --- ---- ----
765.3 754.6 1,619.2 1,598.4
----- ----- ------- -------
Operating expenses:
Electric production fuel
and purchased power 184.3 199.5 392.1 400.4
Electric transmission
service 117.6 130.3 242.3 258.2
Cost of gas sold 28.3 24.6 120.5 119.8
Other operation and maintenance:
Energy efficiency costs 17.2 10.5 37.5 24.4
Other 127.9 134.0 260.5 265.2
Depreciation and
amortization 115.0 102.1 222.0 204.6
Taxes other than income
taxes 25.7 25.0 52.1 51.3
---- ---- ---- ----
616.0 626.0 1,327.0 1,323.9
----- ----- ------- -------
Operating income 149.3 128.6 292.2 274.5
----- ----- ----- -----
Interest expense and other:
Interest expense 52.8 48.0 105.1 96.0
Equity income from
unconsolidated
investments, net (11.3) (9.1) (22.8) (19.6)
Allowance for funds used
during construction (10.1) (15.3) (27.1) (28.5)
Interest income and other (0.1) - (0.2) (0.2)
---- --- ---- ----
31.3 23.6 55.0 47.7
---- ---- ---- ----
Income from continuing
operations before income
taxes 118.0 105.0 237.2 226.8
Income taxes 21.2 18.1 38.8 39.7
---- ---- ---- ----
Income from continuing
operations, net of tax 96.8 86.9 198.4 187.1
Income (loss) from
discontinued operations,
net of tax - (0.5) 1.4 (1.6)
--- ---- --- ----
Net income 96.8 86.4 199.8 185.5
Preferred dividend
requirements of IPL 2.5 2.5 5.1 5.1
--- --- --- ---
Net income attributable to
Alliant Energy common
shareowners $94.3 $83.9 $194.7 $180.4
===== ===== ====== ======
Weighted average number of
common shares outstanding
(basic and diluted) 229.0 227.0 228.3 226.9
===== ===== ===== =====
Earnings per weighted
average common share
attributable to Alliant
Energy common shareowners
(basic and diluted) $0.41 $0.37 $0.85 $0.80
===== ===== ===== =====
Amounts attributable to Alliant Energy
common shareowners:
Income from continuing
operations, net of tax $94.3 $84.4 $193.3 $182.0
Income (loss) from
discontinued operations,
net of tax - (0.5) 1.4 (1.6)
--- ---- --- ----
Net income $94.3 $83.9 $194.7 $180.4
===== ===== ====== ======
Dividends declared per
common share $0.315 $0.29375 $0.63 $0.5875
====== ======== ===== =======
ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
June 30, December 31,
2017
2016
----
(in millions)
ASSETS:
Current assets:
Cash and cash
equivalents $7.3 $8.2
Other current assets 807.4 868.9
Property, plant and
equipment, net 10,608.1 10,279.2
Investments 354.5 337.6
Other assets 1,966.1 1,879.9
------- -------
Total assets $13,743.4 $13,373.8
========= =========
LIABILITIES AND EQUITY:
Current liabilities:
Current maturities of
long-term debt $5.2 $4.6
Commercial paper 368.6 244.1
Other current
liabilities 834.4 913.3
Long-term debt, net
(excluding current
portion) 4,354.3 4,315.6
Other liabilities 3,930.5 3,834.2
Equity:
Alliant Energy
Corporation common
equity 4,050.4 3,862.0
Cumulative preferred
stock of Interstate
Power and Light
Company 200.0 200.0
----- -----
Total equity 4,250.4 4,062.0
------- -------
Total liabilities and
equity $13,743.4 $13,373.8
========= =========
ALLIANT ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended June 30,
2017 2016
---- ----
(in millions)
Cash flows from operating
activities $502.0 $510.0
------ ------
Cash flows used for investing
activities:
Construction and acquisition
expenditures:
Utility business (579.3) (491.0)
Alliant Energy Corporate
Services, Inc. and non-
regulated businesses (28.2) (28.9)
Other (18.9) 19.1
----- ----
Net cash flows used for
investing activities (626.4) (500.8)
------ ------
Cash flows from (used for) financing
activities:
Common stock dividends (143.1) (133.2)
Proceeds from issuance of
common stock, net 137.3 13.8
Net change in commercial
paper 164.5 127.8
Other (35.2) (16.9)
----- -----
Net cash flows from (used
for) financing
activities 123.5 (8.5)
----- ----
Net increase (decrease)
in cash and cash
equivalents (0.9) 0.7
Cash and cash equivalents
at beginning of period 8.2 5.8
--- ---
Cash and cash equivalents
at end of period $7.3 $6.5
==== ====
KEY FINANCIAL AND OPERATING STATISTICS
June 30,
2017 June 30, 2016
--------- -------------
Common shares
outstanding (000s) 231,062 227,334
Book value per share $17.53 $16.67
Quarterly common
dividend rate per
share $0.315 $0.29375
Three Months Ended June 30, Six Months Ended June 30,
2017 2016 2017 2016
---- ---- ---- ----
Utility electric sales (000s of megawatt-
hours)
Residential 1,537 1,586 3,301 3,427
Commercial 1,506 1,537 3,091 3,133
Industrial 2,626 2,654 5,257 5,158
Industrial - co-generation
customers 267 224 480 486
--- --- --- ---
Retail subtotal 5,936 6,001 12,129 12,204
Sales for resale:
Wholesale 906 925 1,909 1,905
Bulk power and other 217 97 265 196
Other 24 26 50 51
--- --- --- ---
Total 7,083 7,049 14,353 14,356
===== ===== ====== ======
Utility retail electric customers (at
June 30)
Residential 810,419 806,663
Commercial 141,658 141,145
Industrial 2,563 2,552
Total 954,640 950,360
======= =======
Utility gas sold and transported (000s of
dekatherms)
Residential 3,300 3,804 15,044 15,920
Commercial 2,807 3,138 10,651 11,222
Industrial 560 681 1,532 1,652
--- --- ----- -----
Retail subtotal 6,667 7,623 27,227 28,794
Transportation / other 15,954 19,078 35,062 41,313
Total 22,621 26,701 62,289 70,107
====== ====== ====== ======
Utility retail gas customers (at June 30)
Residential 366,650 364,586
Commercial 44,465 44,560
Industrial 373 390
Total 411,488 409,536
======= =======
Estimated margin decreases from impacts of temperatures (in millions) -
Three Months Ended June 30, Six Months Ended June 30,
2017 2016 2017 2016
---- ---- ---- ----
Electric margins $- $5 ($9) ($1)
Gas margins - - (5) (3)
--- --- --- ---
Total temperature impact on
margins $- $5 ($14) ($4)
=== === ==== ===
Three Months Ended June 30, Six Months Ended June 30,
2017 2016 Normal 2017 2016 Normal
---- ---- ------ ---- ---- ------
Heating degree
days (HDDs) (a)
Cedar Rapids,
Iowa (IPL) 624 651 693 3,543 3,720 4,144
Madison,
Wisconsin (WPL) 757 828 826 3,887 4,086 4,365
Cooling degree
days (CDDs) (a)
Cedar Rapids,
Iowa (IPL) 244 297 215 244 297 217
Madison,
Wisconsin (WPL) 172 201 175 172 201 177
(a) HDDs and CDDs are calculated
using a simple average of the
high and low temperatures each
day compared to a 65 degree
base. Normal degree days are
calculated using a rolling
20-year average of historical
HDDs and CDDs.
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SOURCE Alliant Energy Corporation
